Indian steelmakers must match ambition with action on decarbonization in Commodity News 04/05/2026 A widening gap between Indian steel companies’ stated decarbonisation targets and their concrete actions to achieve them risks locking in emissions-intensive technologies for decades, slowing their progress to net zero, and undermining the sector’s long-term competitiveness. A new report from the Institute for Energy Economics and Financial Analysis (IEEFA), ‘Decarbonisation readiness in India’s steel sector’, reveals that the Indian steel sector has embraced climate targets that align with the Paris Agreement. However, this ambition is not matched by corresponding progress in building the operational, technological, and financial infrastructure required. Moreover, the sector faces a critical timeframe over the next decade, in which decisions by companies, investors and government will determine the prospects for steel decarbonisation in India. “India’s steel industry stands at a crossroads,” says Dr. Saurabh Trivedi, Lead Specialist, Sustainable Finance and Carbon Markets – South Asia at IEEFA. “India is the world’s second-largest steel producer, but while demand has plateaued or is declining among other major steel-producing regions, in India the sector is on a steep growth curve. Therefore, the choices Indian companies make in the next few years will have profound implications for global steel sector emissions trajectories through mid-century.” The analysts evaluated the decarbonisation readiness of a sample of ten steel producers — seven Indian and three global peers — assessing the connection between their stated emission reduction targets and their actions in terms of strategic planning, operational capabilities, and financial alignment. The Indian companies assessed include JSW Steel, Tata Steel, Steel Authority of India Limited (SAIL), Jindal Steel, Rashtriya Ispat Nigam Limited (RINL), Jindal Stainless Limited, and Godawari Power and Ispat Limited (GPIL), while the global companies are ArcelorMittal, POSCO, and Nippon Steel. The findings indicate that climate ambition has outpaced implementation. Five of the seven Indian companies have adopted Paris-aligned net-zero targets for 2050, but they scored comparatively poorly across the five key parameters assessed. In addition, emissions intensity for most Indian steel companies has worsened over the last three years, at a time when global peers have achieved reductions. “Companies have set targets, and technology planning is advancing among the leaders, but capital allocation has not moved,” says Soni Tiwari, Energy Finance Analyst – South Asia at IEEFA. “Meanwhile, emissions are heading in the wrong direction, and that problem is set to worsen as the sector grows unless technology substitution accelerates.” Steel companies’ decarbonisation readiness score A blast furnace (BF) typically operates for 20–25 years, with each relining extending its lifespan by another 15–20 years. In India, around 43 million tonnes per annum (MTPA) of existing BF capacity is due for relining before 2030, which would allow these furnaces to continue operating for an additional 15–20 years. Extending and expanding these technologies will lock in emissions for decades, undermining decarbonisation targets. This in turn will expose Indian companies to tightening international controls such as carbon border adjustments, green procurement mandates, and investor pressure for credible transition plans. Overcoming